Custom Presentation about the economic demand curve

1. Olivia Dickson
TheDemandCurve

2. DefinetheDemandCurve

3. DemandCurve
A Curve indicating the
quantities that buyers are
willing to purchase at various
prices.

4. TheDemandSchedule
Price ($) 1 2 3 4 5
Quantity
Demanded per
week
10 5 2.5 1.25 .625
Demand Schedule for X Product
A table showing the relationship between
price and quantity demanded.

5. WhichWayDoestheDemandCurveSlope?

6. The Demand Curve
Demand Curve
Prices ($)
Quantity

7. NegativeRelationship(-)
Negative (or inverse) relationship: the relationship between two variables if an
increase in one is associated with a decrease in the other variable.
SO…
The demand curve slopes downward because it represents an inverse
relationship between PRICE ($) and QUANTITY DEMANDED.
P Q

8. Change in Demand
(decrease)
Demand Curve 1
Prices ($)
Quantity
Demand Curve 2
* A shift in the entire demand curve.

9. Change in Demand
(increase)
Demand Curve 1
Prices ($)
Quantity
Demand Curve 2
* A shift in the entire demand curve.

10. Change in Quantity Demanded
(decrease)
Demand Curve
Prices ($)
Quantity
D1
D2
* Movement along a demand curve in response
to price change.

11. Change in Quantity Demanded
(increase)
Demand Curve
Prices ($)
Quantity
D1
D2
* Movement along a demand curve in response
to price change.

12. OtherVocabulary
relating to demand
Market Demand: the demand from all buyers in a
particular market (65).
Individual Demand: the demand of one particular
buyer (65).
Nonprice Determinants: any factor that affects the
quantity demanded, other than the price of the food
or service being demanded (66).
Substitute Good: a good that can be used in place of
another good (66).
Ex- Hot Dogs & Grilled Cheese
Complementary Good: a good that is used along
with another good (67).
Ex - Hot Dogs & Ketchup

13. Non-PriceDeterminantsofDemand
Change in…
(1) Taste & Preferences
(2) Income and other Assets
(3) Price of Related Goods & Services
(4) Buyer’s Expectations about the
Future
(5) Number of Buyers in the Market

14. Thanks!